(a) As used in this section:
(1) “Cost of attendance” means the recognized cost of attendance of an institution of higher education calculated under rules established by the Division of Higher Education;
(2) “Federal aid” means scholarships or grants awarded to a student as a result of the Free Application for Federal Student Aid, excluding the Pell Grant;
(3) “Other aid” means a scholarship, grant, waiver, or reimbursement for tuition, fees, books, or other cost of attendance, other than federal aid or state aid, provided to a student from a postsecondary institution or a private source;
(4) “State aid” means scholarships or grants awarded to a student from public funds, including without limitation the Arkansas Academic Challenge Scholarship under § 6-85-201 et seq., the Division of Higher Education scholarship and grant programs, state general revenues, tuition, and local tax revenue; and
(5)
(A) “Student aid package” means federal aid, state aid, and other aid a student receives for postsecondary education expenses.
(B) “Student aid package” does not include federal aid, state aid, or other aid received by a student who is:
(i) An active member of the United States Armed Forces;
(ii) An active member of the National Guard;
(iii) A member of the reserve components of the armed forces; or
(iv) The spouse of a person under subdivision (a)(5)(B)(i), (ii), or (iii) of this section.
(b)
(1) A postsecondary institution shall not award state aid in a student aid package in excess of the cost of attendance at the institution where the student enrolls.
(2) For the purpose of stacking scholarships in a student's student aid package, the Arkansas Academic Challenge Scholarship under § 6-85-201 et seq. shall be reduced or returned first.
(c) A postsecondary institution shall report to the division the total amount of federal aid, state aid, and other aid a student receives if the student receives an award from a division scholarship or grant program, including the Arkansas Academic Challenge Scholarship under § 6-85-201 et seq.
(d)
(1) When a student receives a student aid package that includes state aid and the student aid package exceeds the cost of attendance, the postsecondary institution shall repay state aid in the amount exceeding the cost of attendance, starting with state aid received under the Arkansas Academic Challenge Scholarship under § 6-85-201 et seq.
(2) The division shall credit the excess state aid funds to the appropriate division fund or trust account.
(e) A student awarded state aid shall disclose all state aid, federal aid, and other aid to:
(1) The division if the division awards state aid to the student; and
(2) A postsecondary institution that awards state aid or other aid to the student.